The Netscape Effect. In the four years before the Netscape IPO, GDP grew at an annual rate of 3%. In the four years after the IPO, GDP grew at an annual rate of 4.3%.
High-Flying Analogy. "If the Old Economy was an automobile, the New Economy is an airplane. In an automobile, if anything unexpected happens, the natural and correct response is to put on the brakes. But just as an airplane needs a certain airspeed in order to stay aloft, so the New Economy needs fast growth in order for high-risk investment in innovation to be worthwhile. And just as pilots have to learn how to deal with a stalled and falling plane by the counterintuitive maneuver of pointing the nose to the ground and accelerating, policymakers have to learn how to go against their instincts by cutting [interest] rates when inflation goes up."
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